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Give the Meaning of 'Share Capital'. - Accountancy

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प्रश्न

Give the meaning of 'Share Capital'.

उत्तर

The amount that has been raised or can be raised through the issue of shares by a company is called Share Capital. It can also be defined as an investment made in a company by the shareholders.

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Nature and Types of Share and Share Capital
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2013-2014 (March) Foreign Set 1

संबंधित प्रश्‍न

'Suvidha Ltd.' is registered with an authorised capital of Rs 10,00,00,000 divided into 10,00,000 equity shares of Rs 100 each. The company issued 1,00,000 shares for public subscription. A shareholder holding 100 shares, failed to pay the final call of Rs 20 per share. His shares were forfeited. The forfeited shares were re-issued at Rs 90 per share as fully paid up.
Present the 'Share Capital' in the Balance Sheet of the company as per Schedule VI Part I of the
Companies Act, 1956, Also prepare 'Notes to Accounts'.


The Quick Ratio of a company is 0.8 : 1. State with reason whether the following transactions will increase, decrease or not change the quick ratio :
(1) Purchase of loose tools Rs 2,000.
(2) Insurance premium paid in advance Rs 500.
(3) Sale of goods on credit Rs 3,000.
(4) Honoured a bills payable Rs 5,000 on maturity.


X Ltd. redeemed 1,000 6% Debentures of Rs 100 each by converting them into equity shares of Rs 100 each. The 6% Debentures were redeemable at a premium of 5% for which the Equity shares were issued as a premium of 25%. Pass the necessary journal entries for the redemption of the above mentioned debentures in the books of X Ltd.


Shares are always issued at par.


A gift given by a legal representative as per the will is called ________.


Answer in one Sentence only :
What is authorised capital?


Answer in one Sentence only :
Write the meaning of equity share capital.


Answer in one Sentence only :
What is meant by convertible preference share?


Give one word / Term / phrase for  the following statement :
Capital stated in the capital clause of Memorandum of Association.


Give one word / Term / phrase for  the following statement :
The capital which is not disclosed in the balance sheet.


Give one word / Term / phrase for  the following statement :
Preference share on which arrears of dividend accumulate.


Give one word / Term / phrase for  the following statement :
The capital on which dividend is paid.


Select the most appropriate answer from the alternatives given below and rewrite the sentence :
Paid up, value of all shares allotted is called ______________ capital.


Select the most appropriate answer from the alternatives given below and rewrite the sentence :
The document inviting offers from public to subscribe its share is called _____________.


Under which of the following heading at liabilities side of the company's balance sheet, the balance in 'Calls-in-Advance' account is shown?


Assertion (A): Authorised share capital is not issued to the public at once.

Reason (R): Companies do not exhaust their authorised capital in the beginning but only a part of the authorised capital is issued for public subscription. Rest of the authorised capital is raised by the company in a phased manner depending on the need for funds.


A company has:


The liability of members in a company is ______.


Assertion (A): The equity shareholders are paid dividend on the shares held by them.

Reason (R): As the equity shareholders are the owners and dividend form their earning.


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